The Challenges and Opportunities for Automotive Suppliers in the Electric Vehicle Era

🚗Revenues for internal combustion engine parts are expected to decline, while those for electric drivetrains and batteries are projected to rise.

🧩Electric vehicles have significantly fewer parts compared to internal combustion engine vehicles, impacting the supply chain and business models of automotive suppliers.

🔋Suppliers are adapting by offering expertise in new areas and developing innovative products for the electric vehicle industry.

💡The market for electric vehicle components is smaller, leading to increased competition among suppliers and potential price wars.

🔄Suppliers must pivot their business strategies and adapt to the changing automotive landscape to thrive in the electric vehicle era.

What is the future outlook for internal combustion engines?

—Revenues for internal combustion engine parts are expected to decline by 44% through 2027.

How do electric vehicles impact the supply chain of automotive suppliers?

—Electric vehicles have significantly fewer parts compared to internal combustion engine vehicles, leading to changes in supply chain dynamics and business models for automotive suppliers.

How are suppliers adapting to the shift towards electric vehicles?

—Suppliers are adapting by offering expertise in new areas and developing innovative products for the electric vehicle industry.

What are the challenges faced by automotive suppliers in the electric vehicle era?

—The market for electric vehicle components is smaller, leading to increased competition among suppliers and potential price wars.

What should suppliers do to thrive in the electric vehicle era?

—Suppliers must pivot their business strategies and adapt to the changing automotive landscape to thrive in the electric vehicle era.

00:01The automotive industry is shifting towards electric vehicles, posing challenges for traditional automotive suppliers.

00:19Revenues for internal combustion engine parts are expected to decline 44% through 2027.

00:23Electric drivetrains and batteries are projected to see a rise in revenues.

00:35Electric vehicles have significantly fewer parts compared to internal combustion engine vehicles.